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Lakes on offer

Thursday, 6th May, 2010

The Zinc Lakes have been offered to City Council for $1 The Zinc Lakes have been offered to City Council for $1

Perilya has offered to give the Zinc Lakes to
City Council for a dollar
and says the public will
continue to have access
to the lakes for the near
future.
Local MP John Williams
yesterday received a
response from Perilya to a
letter he wrote to the mining
company about community
concerns about the
future of the “twin lakes”.
“I am grateful for
Perilya’s prompt response
and can assure them the
people of Broken Hill will
continue to value their
access to this great facility,”
Mr Williams said.
The Member for Murray-
Darling said Perilya, who
now own the lakes, told him
that it had no immediate
plans to restrict community
access to the site and that
they had offered to give
the lakes to City Council
for $1.00.
Following is the text of
the letter received by Mr
Williams yesterday:
“Dear Mr Williams, We
refer to your letter dated
16th April, 2010 and
respond as follows:
“We agree with many of
the comments in your letter
and consider that the Zinc
Lakes is an important recreation
facility for the community
of Broken Hill.
“We do however question
that such facilities
are correctly supplied and
maintained by a publicly
listed company.
“Discussions and correspondence
regarding
the present ownership and
future position of the Zinc
Lakes and Zinc Ovals have
been ongoing with the
Broken Hill City Council
since the release of the
BHCC’s ‘plan of management
for open space’
in 2009. As part of these
discussions, Perilya has
offered to transfer the ownership
of the Zinc Lakes to
BHCC for $1.00.
“Recent events surrounding
the proposed heritage
listing of the City of Broken
Hill have reinvigorated discussions
(at state, federal
and local government levels)
around the eventual
ownership of a number of
Perilya assets. These discussions
are ongoing.
“While there have been
no incidents that have highlighted
issues of public
safety, there have been a
number of near misses that
have raised awareness of
exposure to Perilya. Again
these issues have been
raised with local government
and elicited no support.
“Your letter does not
recognise the legal obligations
that is shouldered by
Perilya, its directors and its
officers while our organization
continues to provide
and maintain the Zinc
Lakes’ facilities. As you
will be aware, the obligations
in NSW are particularly
severe and the advice
we have received verbally
from the Department of
Primary Industries is that
the provision of public open
space is not appropriate for
a mining tenement.

“Further, the consumption
of alcohol is also
inappropriate on any mining
tenement in NSW.
However, as you will be
aware, alcohol is regularly
consumed at functions
conducted at the Zinc
Lakes.
“We note in particular
that any incident that may
occur at the Zinc Lakes
under the current ownership
regime is treated as a
mining injury/incident
under the relevant NSW
Mining and Safety Laws.
“The penalties for such
incidents include:
Significant fines and civil
penalties for the Company,
its directors and senior
officers, and; Criminal
sanctions against directors
and senior executives,
including imprisonment.
“In these circumstances,
it is simply not
appropriate for Perilya to
expose its shareholders to
the potential financial liability
nor its directors and
officers to the potential
criminal sanctions that can
result from Perilya continuing
to maintain the Zinc
Lakes in its current use.
“At present, Perilya has
no fixed plan to close the
Zinc Lakes or any other
facility that you correctly
identify as being for the
benefit of the community.
“We consider our actions
in restricting long term
bookings for this facility
as a responsible precursor
to the transfer of this asset
to the Community of
Broken Hill.
“We would welcome
your increased involvement
in this process in the
interests of the continued
availability of this asset to
the Broken Hill
Community.
Yours faithfully,
Paul Arndt,
Manager Director &
CEO.

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